The use of foreign investments within pension funds has evolved substantially in the quest for returns, particularly in the current climate—low interest rates (in some cases negative rates) and increasingly volatile markets—and in the face of lengthening lifespans and a wave of retirements in an aging world. A new report from the Association of the Luxembourg Fund Industry and PwC highlights how that turn toward foreign investments amid today's challenges faced by pension funds has changed since 2015, when ALFI commissioned its first report on the topic. Among its other findings, the report points out that while retirement assets experienced "steady growth" of 3.2 percent in compound annual growth rate between 2014 and 2018, the volatility and downturn at the end of 2018 let the majority of pension funds in for negative real rates of return worldwide. Still, it says, since pension funds take the long view, short-term volatility "is less of a concern." However, that doesn't mean they aren't looking for higher returns and making other changes to adjust to changes in world economies. READ MORE: |

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